How to think like Warren Buffett - Top Stocks Blog - MSN Money
 
Search Top Stocks:

How to think like Warren Buffett

Posted Aug 25 2008, 12:56 PM by Kim Peterson
Rating:
Filed under: ,

The Malaysia Star interviews Robert Miles, author of three books about Warren Buffett. Miles has spent 10 years studying Buffett, and offers some tips on how to think like one of the world's greatest investors.

So what's the Buffett strategy? Here are the steps, according to Miles:

Find a stock's value. Don't let the market determine a stock's value for you. Calculate the value of a share on your own, and then figure out the best price to pay for it.

Wait. Be patient, and wait for the market to give you a good price on what you want.

Learn. Study accounting and learn how to value a business. Take time to understand how the market works.

Think like an owner. Look at a stock as a share of a business. You own part of that business. That allows you to think more about the value of the company.

Watch the market mood. The market is either manic or depressed. Sell during a manic market and buy in a depressed market.

Look for safety. The margin of safety is the difference between a stock's value and a stock's actual price. A lower price means more of a margin of safety.

Control your emotions. People want to win, and they push share prices up and down. Be rational, master your emotions and don't confuse price with value.

Related reading:

A look at Warren Buffett's stock holdings -- all of them

Buffett's bet against hedge funds

Classic Buffett

What a little Buffett will do for you

It's great to be Buffett

 

Back to Top Stocks Digg this | Email this | Link to this
Comments

 

To think like warren ,

I look at anything I can sell for a profit , regardless of its connection to anything else , and buy it as cheap as I can , to sell for as much as I can , no matter who or what I harm in the process.

I buy and sell with absolutely no concience, and I worship the green god of money above all gods.

circuit burner (Posted 08.25.08 2:51 PM) Report Abuse

more details would have made this a great article....

Kalzy (Posted 08.25.08 3:11 PM) Report Abuse

circuit burner has no idea what they are talking about.  warren buffett is totally against that mentality as evidenced by BH's shelter for many companies during the balance sheet raids in the 80's.  don't talk about something you don't know about.

Jack (Posted 08.25.08 4:25 PM) Report Abuse

The article needed more details that related to Warren B. .  

Shearee (Posted 08.25.08 4:53 PM) Report Abuse

Warren is a communist in my judgement, he hates America and can't wait for this beautifull nation to crumble.

Scott (Posted 08.25.08 6:43 PM) Report Abuse

How to you value a stock on your own - as Kalzy said - little more detail please!

jcj1568 (Posted 08.25.08 6:50 PM) Report Abuse

This article contributes nothing new to what we already know about Buffett. I think I actually know less than before I read it. Glad it was online so you didn't have to waste paper and ink.

Ben Graham (Posted 08.25.08 6:53 PM) Report Abuse

Warren Buffet is the King of Wall Street.   Serveral years ago Buffet was criticized for not getting into tech stocks, he was called old fashioned, out of touch.  However Buffet's stratagey has proved very succesfull, reasonable and profitable.

To the contrary money is not Buffet's God.  He is diciplined, conservative, generous and a genious of the markest.

douglas (Posted 08.25.08 7:02 PM) Report Abuse

What a poor article, you don't have to spend ten years writting about Warren Buffet to figure that out. The author of this article should be fired.

CC (Posted 08.25.08 8:06 PM) Report Abuse

Warren Buffett was selling trinkets in the 1960's and claimed that "if you had invested 10,000 then you would now be worth and I quote $10,000,000...hello Buffett, welcome back to reality.....if ANY one of us had invested and HAD $10,000 to begin with in the 1960's and had invested in any worthy company not just BH we would ALL be millionare's. Of course that's why we have to wise like Buffett to know this......and I'll keep the rest of my comments to myself!!!! BTW people ---let's not forget that most of the books out there about Buffett are writtten by family members.

Nebraska Farm Girl (Posted 08.25.08 10:12 PM) Report Abuse

1 2 > Last

Send a Comment

Comments must be directly related to the blog entry. Comments with offensive language will be deleted. Your e-mail address won't be displayed.

(please, no HTML tags. Web addresses will be hyperlinked):